Premium bonds are 'attractive investment'

Premium bonds are now more than ever an attractive investment opportunity, according to one analyst.

Meera Patel from asset management services provider Hargreaves Lansdown says that there is now more money in premium bonds than previously and that they are simpler to understand.

"Premium bonds are far more attractive these days than they were before because maybe a year ago they only had a jackpot prize of one £1 million, but they have increased that to two £1 million prizes and the reason they have done that is because more and more people are investing in premium bonds," she said.

Research published by the Times in July 2007 stated that someone investing £1,000 in premium bonds had a 40 per cent chance of winning.

From August 2005, there have been two £1 million jackpots drawn each month.

The minimum purchase on premium bonds is £100 and the maximum holding is £30,000.